Leadership & Management Skills
his schooling from the Canarsie High School in New York. He finished his Bachelor’s Degree in Communication from the Northern Michigan University in 1975. He begun his career by working as a salesman for the Xerox Group, he then went on to become the vice president of Swedish house wares manufacturer’s US operations. His move into the Starbucks Coffee change begun in 1981 when he visited Seattle to find out which company was buying Hammarplast Swedish drip coffeemakers from the company he was working.
Here he came across a company called Starbucks Coffee, Tea and Spice. He was very impressed by the dedication of the owners of the 10 years old company and their passion for selling g...
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...ood coffee to its customers. After this it took him a year to convince the owners to make him a part of their venture and finally in 1982 he was made the Director of Marketing and Operations of Starbucks. In the following year while visiting Italy for a house ware convention he noticed the famous Coffee Bar phenomenon and found at least one coffee bar in every block.
Determined to make this work in America he returned and tried to convince the then owners of Starbucks to start the same in their stores, however this idea was rejected by them as they din want to get into the restaurant business. Following this Schultz left the company and started his own company called Il Giornale and in the next year he managed to raise enough capital to buy out Starbucks for $3. 8 million. Starbucks today has over 1500 outlets around the world with a total employee base of over 25,000
http://en. wikipedia. org/wiki/Howard_Schultz ? http://www.myprimetime. com/work/ge/schultzbio/ Purpose The purpose of this paper is to learn in detail about the managerial and leadership skills of Howard Schultz. The techniques used by him in making various managerial decisions and the involvement of employees in making these decisions. How he was able to maintain the attrition rate in Starbucks at 57% which was way below the national average of 250% in retail outlets and restaurants. We also learn about the person who at one time was a salesman and now is the CEO of Starbucks which is a part of the FORTUNE’s 100 Best Places to Work.
On how important it is to become a leader and not just stay a manager and on how important it is to create a good relation between the manager and the employees. The way a leader should involve a subordinate in the decision making process of the company. On how he helped the company grow keeping its employees passionate about their work and towards the company by giving them a share in the profits of the company and also by allowing them to be a part of the company by letting them invest in stock options of the company.
Lastly how this information and strategies can be used by me in my own professional and personal life. Summary One of the most important things that help a company to grow and become what Starbucks is to have a good leader who the employees can follow and leads the company to success. Leadership qualities of a person helps a lot in helping a firm grow and one major aspect of ones leadership qualities are their abilities to interact with their employees and also create a bond with them that will encourage them to be more dedicated towards their work and towards the company and its leader.
Schultz’s leadership qualities helped by far in making Starbucks one of the most renowned and largest coffee chains in the world. Schultz behavior to his compassion towards his employees was based on a fact that he came from the working class of Brooklyn and had rarely seen his father receive any of the benefits that were usually given to people working in a company. He very well knew it for a fact that not many companies were able to keep their employees happy and did not value their work force. These employees of many firms were not even provided with the basic privileges like medical facilities etc.
This was the very reason that Schultz wanted his company’s employees to be happy and give them all that his father could not get when he was working. He never believes in referring to his employees as employees, he calls them as partners and also treats them like one. Starbucks was the first privately owned company to provide facilities like full health benefits to his part time employees and also to the full time ones. In 1991 to make them a part of their company he allowed them to partner in his company by providing them with stock options known as “Bean Stock”. The company was the fist pure coffee company to be publicly listed in 1991.
Some of the top three lessons that can be learnt from the work done by Howard Schultz are as follows; 1) To find out by digging deep and knowing what you are really passionate about and telling about the same to all your employees, customer and colleagues. By being energetic and passionate you show the image that is liked by one and all as people love to be with people who are so passionate and care so much about their business. 2) You should be able to set an example they can follow and show them a future that will be more beautiful and lively by the service provided by your business.
3) You should be able to tap the best out of your employees and this can be done by telling them stories of dream and passion as people easily go in for them. This will help in making everyone work towards the same vision. The company on a regular basis also shares a part of its profits with its employees. These helps in keeping the work force motivated and work towards the prosperity of the company as in the long run they will benefit from it. Most of the retail organizations do not care for their employees and then suffer from high attrition rate; however that’s not the case with Starbucks.
This can be seen from the fact that Starbucks was rated second in the Fortune 500 “Best Organizations to Work For”. The company has always encouraged its employees to be a part of its decision making process and always involves them to get their opinion about the changes to be made in their business and the new strategies to employed for better growth. Howard Schultz truly believes in the fact that his employees are his biggest assets and I quote his speech from 2002 “The relationship we have with our people and the culture of our organization is our most sustainable competitive benefit.
We aren’t in the coffee business, serving people. We are in the people business, serving coffee”. This dedication can also be seen in the company’s mission statement clearly mentions two of its most important motives the first and I quote “Provide a great work environment and treat each other with respect and dignity” and the second “Understanding of environmental issues and sharing information with our partners”, this clearly shows how important it is for the company to provide a equal say for its employees and give them the best environment in work in.
The Bible on Leadership: From Moses to Matthew – Management Lessons for Contemporary Leaders By Lorin Woolfe ? Learning from Starbucks Chairman Howard Schultz by Branden http://www. 1024media. com/428/ Pour Your Heart Into it: How Starbucks Built a Company One Cup at a Time By Howard Schultz, Dori Jones Yang http://www. starbucks. com/aboutus/environment. asp